Report and Accounts

Report of the board of governors

Summary

The danish economy
International background
The Danish economy
Wage and price development
Credit expansion
Economic prospects

Monetary and exchange-rate policy
The fixed-exchange-rate policy
The ECB's monetary policy
The monetary policy of Danmarks Nationalbank
The money market and the short-term interest rates
Capital flows and the foreign-exchange reserve

Financial markets
Foreign-exchange markets
Interest rates
Stock markets

The domestic financial system
The banks
The mortgage-credit institutes
The investment associations
The bond market
Insurance and pensions
Framework for the financial sector
The work on the new capital-adequacy rules
Cooperation between central banks and supervisory authorities in the EU
Memorandum of understanding between Nordic central banks on financial crisis management
VB Finans and Himmerlandsbanken

Banknotes and coins
Banknotes and coins in circulation
Upgrading of banknotes
Counterfeit banknotes
20-krone coin with new reverse
Thematic coins: Børsen's dragon-tail spire and Christiansborg Palace Tower
Faroese banknote series

Payment systems
Development in the payment and settlement systems
Retail payments
Oversight
Development of the payments infrastructure

International monetary cooperation
Enlargement of the EU
EU member states outside the euro area
Negotiations on a constitutional treaty for the EU
The stability and growth pact
The International Monetary Fund, IMF

Organisation and tasks of Danmarks Nationalbank
Danmarks Nationalbank's objectives and values
Danmarks Nationalbank's management
Departments
Organisation chart 1 March 2004
Staff
Other initiatives in 2003
Representation on committees, etc.
Representation in international organisations
Danmarks Nationalbank's Anniversary Foundation of 1968
Danmarks Nationalbank's guest apartments at Nyhavn 18
The Erik Hoffmeyer Travel Grant Foundation

Report on Danmarks Nationalbank's accounts
Danmarks Nationalbank's management of financial risks
Presentation of Danmarks Nationalbank's accounts

Accounts

Danmarks Nationalbank's accounts for the year 2003

Appendix

Press releases
The statutory basis for the financial sector
Danmarks Nationalbank's publications
Danish bank holidays other than Saturdays and Sundays

Appendix of tables

Charts

Chart

1. Growth in gross domestic product, GDP
2. Contribution to growth
3. The balance of payments
4. Wage increases in Denmark and abroad
5. Nominal and real effective krone rates
6. Increase in consumer prices in Denmark and the euro area
7. Growth in domestic lending by banks and mortgage-credit institutes
8. Krone vis-à-vis euro
9. The ECB's minimum bid rate and the euro money-market interest rate
10. Monetary-policy interest rates in Denmark and the euro area
11. Money-market interest rates in Denmark and the euro area
12. The banks' average interest rates
13. Portfolio investment, capital imports
14. Euro vis-à-vis dollar and yen
15. Pound sterling, Swedish krona and Norwegian krone vis-à-vis the euro
16. 10-year yields in the USA, the UK, the euro area and Japan
17. 10-year yield spreads to the euro area
18. Spreads for government bonds and corporate bonds with low credit ratings
19. Stock indices for the USA, Europe and Japan
20. European stock indices
21. Annual growth in deposits and lending
22. Assets of investment associations by fund type, year-end
23. Premature redemptions of mortgage-credit bonds and bond yields
24. Circulation of banknotes
25. Share of total banknotes in circulation
26. Counterfeit banknotes per 1,000 inhabitants in 2003
27. Number of payments by cheque, Dankort and Betalingsservice (direct debit)
28. Estimated budget balance in 2003 in the EU member states
29. Distribution by age and gender
    
    

Tables in the text

Table

1. Key figures for the Danish economy
2. The Danish labour market
3. Capital flows
4. Outstanding mortgage-credit bonds by loan type, year-end
5. Outstanding volume of listed domestic krone-denominated bonds, nominal value
6. Krone payments
7. Euro payments
8. Staff groups
9. Interest-rate sensitivity of Danmarks Nationalbank
10. Foreign-exchangeexposureofDanmarksNationalbank
11. Danmarks Nationalbank's value-at-risk
12. Danmarks Nationalbank's loss in stress scenarios, end 2003
13. Total credit exposure on the foreign-exchange reserve and the domestic securities portfolio, etc., end-2003
    
    

Boxes

Box

1. The ECB's monetary-policy instruments
2. Dollar rate
3. Dynamic effect for callable mortgage-credit bonds
4. Upgraded 200- and 500-krone banknotes
5. Redesigned reverse of the 20-krone coin
6. Thematic coins: Børsen's dragon-tail spire and Christiansborg Palace Tower
7. New Faroese banknote denomination
8. Payment and settlement systems
9. Acceding countries' objectives for ERM II and EMU participation
10. The European Central Bank
11. Report on the UK's compliance with the five tests
12. The budgetary rules of the treaty and the stability and growth pact
13. The IMF's exemptions for exceeding lending limits
14. Danish contributions to the IMF's facilities for low-income countries
15. The Board of Directors of Danmarks Nationalbank, 1 March 2003
16. The Committee of Directors of Danmarks Nationalbank, 1 March 2003
    
    

Appendix of tables

Table

    1   Annual accounts and monthly balance sheets of Danmarks Nationalbank
    2a  Specification of banknotes in circulation
    2b  Issue of new banknotes
    3a  Specification of coins in circulation
    3b  Production of coins (minting)
    4    The net position of the banks and mortgage-credit institutes with
          Danmarks Nationalbank
    5    Money stock
    6    The official interest rates of Danmarks Nationalbank
    7a  The official interest rates of the European Central Bank
    7b  Eurosystem monetary-policy operations allotted through tenders
    8    The foreign-exchange reserve
    9    Denmark's account with the International Monetary Fund
  10    Central rate and fluctuation band vis-a-vis euro in ERM II
  11    Exchange rates